The Stock market $SPX500 is near all time, although in recent weeks there has been a market selloff. The US Dollar has been strengthening while Gold $GOLD has been weakening. It means, investors want to be in cash right now. Should you be in cash and wait for a market crash before investing?
In 1929, the market crashed and then had a slight recovery. If you invested then, you would need to wait 25 years to break even on your investment. You could also argue that people have been saying that the market will crash since 2015 and these people missed on one of the best bull market ever.
Stocks are expensive and that's mainly because of the Federal Reserve System printing money. If the yield on bonds are too low, investors will prefer to buy stocks. We're not seeing inflation yet since economic activities are not at 100% and oil prices $OIL are low but we're certainly seeing monetary inflation.
The Fed is not printing money anymore even though, they will keep interest rates at 0%. This is why there is a selloff. Elections can also lead to a crash as there are many uncertainties.
As an investor, you need to understand your own financial situation to know if you should be in cash right now or in stocks.
If you can invest, I would advise you to invest. Time in the market is more important than timing the market.
You also need to know in what to invest and right now, I would advise investing in stocks with low correlation with the market and of course, which are undervalued.
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